Basics of Organizational Behavior
ALL UG COURSES EXCEPT B.COM. (HONS.) AND B.COM. (PROGRAMME)
- Basics of Organizational Behavior is a generic elective course in Semester IV with 4 credits.
- The course content is based on UGCF-2022 and the National Education Policy 2020.
Compiled By
- Compiled by the Department of Commerce, School of Open Learning.
Introduction to Organizational Behavior
- Authored by Dr. Rakesh Gupta, Dr. Virender Kaushal, and Ms. Ritika Sharma.
- Learning Objectives:
- Understand the concept, features, and importance of an organization.
- Define organizational behavior and its emergence.
- Identify key elements, nature, and scope of organizational behavior.
- Understand the relationship between management and organizational function.
- Understand the challenges faced by organizations in changing times.
Introduction
- Organizations are social systems run by people. Business organizations combine men, money, machinery, material, and management (5 M’s), with management (people) being crucial.
- Understanding human behavior is significant for managers to effectively manage people and achieve organizational goals.
- Managers need to understand:
- Why people behave as they do at work.
- What influences people’s behavior at work.
Concept of Organization
- Mooney and Reiley: Organization is the form of human association for attaining common objectives.
- Talcott Parsons: Organization is a social unit deliberately constructed and reconstructed to seek specific goals.
- Wheeler: Internal organization is the structural framework of duties and responsibilities required of personnel. It's a blueprint for action to achieve company management goals.
Features of Organization
- Group of interrelated individuals: Organizations consist of interconnected people.
- Attainment of common goals: Organizations are formed to achieve common goals.
- Coordination: Coordination among employees and departments facilitates goal achievement, avoiding delays and confusions.
- Delegation of work: Organizations have a hierarchy with different responsibilities and a central authority.
- Performance: Organizations aim to achieve goals through effective performance and human resource development.
Importance of Organization
- Clarity at the Workplace: Clarifies business operations, fosters accountability, and establishes a clear chain of command.
- Optimum Utilization of Resources: Efficient use of financial and human resources, preventing waste.
- Encourages Creativity: Stimulates employee innovation through task delegation and clear job duties.
- Brings Stability: Effective leadership, cooperation, and communication promote workplace stability.
- Personal Growth: Supports human development, delegation, and training, enhancing individual and organizational success.
Organizational Behavior (OB)
- Study of individual behavior in isolation, in groups, and as members of an organization.
- Influenced by personality, perception, learning, attitude, motivation, job satisfaction, leadership, norms, values, and ethics.
- Understanding an individual’s background, social context, and influences is essential for anticipating behavior.
- Effective organizational culture can alter individual behavior.
- Davis and Newstram: Organizational behavior is the study and application of knowledge about how people act within organizations.
- K Aswathappa: OB is the study of human behavior in an organizational setting, the interface between human behavior and organization, and of the organization itself.
Emergence of Organizational Behavior
- Traced to Max Weber and organizational research.
- Industrial Revolution: New production methods, organizational structures, and demands.
- Max Weber: Bureaucracy as the ideal form of organization based on rational-legal principles.
- Scientific Management and Taylorism (1890s): Development of organizational behavior studies.
- Human Relations Movement (1930s-1950s): Contributions from Elton Mayo, Chester Barnard, Henri Fayol, and others.
- 1960s-1970s: Increased quantitative analysis, resource dependence, and informal organizational structure.
- 1980s: Study of organizational change and cultural explanations.
- Multidisciplinary Field: Aims to understand how people behave in organizational situations.
Scope of Organizational Behavior
- Collecting and interpreting data to guide behavior.
- Measuring organizational success by employee job performance and satisfaction.
- Focusing on productivity, quality, and reducing absenteeism and turnover.
- Developing a positive organizational work culture.
- Coordinating individual and team efforts to achieve corporate goals.
- Establishing an appropriate workplace culture and effective leadership.
- Considering elements like benchmarking, re-engineering, job re-design, and empowerment.
Nature of Organizational Behavior
- Independent: A multi- and interdisciplinary field.
- Multidisciplinary: Uses knowledge from psychology, sociology, and anthropology.
- Focused: Addresses organizational issues related to human behavior.
- Normative Science: Prescribes socially acceptable goals.
- Human Approach: People have a natural urge for autonomy and creative expression.
- System Approach: Analyzes human behavior in a socio-psychological framework.
Relationship Between Management and OB
- Management involves planning, organizing, and decision-making.
- Organizational behavior plays a crucial role in management by affecting groups, individuals, and organizational structure.
Need of Management
- Management is necessary for businesses and organizations for planning and decision-making.
Functions of Management
- Planning: Systematic approach to making decisions.
- Organizing: Defining, arranging, and coordinating work.
- Staffing: Recruiting, training, and evaluating employees.
- Directing: Leading, communicating, and supervising employees.
- Controlling: Setting standards, measuring performance, and taking corrective action.
Reasons why Organizational Behavior is an Integral Part of Management
- Understanding the relationship between an organization and its employees.
- Motivating Employees: Using various motivational tactics according to individual needs.
- Improving Industrial Relations: Identifying and managing problems to improve labor relations.
- Effective Use of Human Resources: Inspiring and motivating staff members.
- Predicting Human Behavior: Increasing productivity and profitability.
Key Elements of OB
- People: Individuals and groups with differences that managers must address.
- Structure: Formal and informal social systems within an organization.
- Technology: Resources that people work with, affecting tasks and performance.
- Environment: External factors influencing attitudes and working conditions.
Organizational Behavior in Changing Times
- Challenges include workforce diversity, changing demographics, globalization, and the need for quality.
Challenges Faced by Management
- Work-force Diversity: Accommodating diverse groups of people at the workplace by addressing their lifestyles, cultural moorings, family needs, and work styles.
- Changing Demographics of Workforce: Managing increasing numbers of women, young workers, and dual-income households.
- Changing Employee Expectations: Meeting expectations for empowerment, equality, and quality of work-life.
- Ever Expanding Globalization: Managing a diverse global workforce and adapting management styles across different cultures.
- Towards Improving Quality: Delivering quality products and services through Total Quality Management (TQM).